A Detailed Insight on Why GCCs Prefer Managed Offices in India

Understanding GCCs and Their Growth in India

Before diving into the stats of how GCCs are contributing to the demand for managed spaces in India, it’s important to go through the below covered aspects:

What are GCCs?

Global Capability Centers (GCCs) in India are offshore units established by multinational companies to oversee essential business functions. These include IT services, finance, human resources, research, and development. By combining these functions, businesses achieve cost efficiencies, improved operational performance, and enhanced innovation within a controlled environment.

The Growth of GCCs in India

India has emerged as a key destination for GCCs and is expected to have 1,900 centres, generating approximately $60 billion in annual revenue by the end of 2025. The country’s skilled workforce, cost-efficient business solutions, and advanced digital infrastructure have fueled this expansion. Further investments in AI, automation, and data analytics are boosting GCC's demand in India, solidifying its role in global business operations.

The Rise of Managed Office Space Demand by GCCs

As GCCs expand, the need for flexible and efficient office spaces has also surged. Managed office spaces provide a tailored solution that meets the evolving needs of these centres. Unlike traditional office leases, these spaces offer a hassle-free experience by integrating lease agreements, design, infrastructure, and facility management under one contract. This integrated approach allows GCCs to focus on business growth while ensuring a high-quality workspace experience.

Additionally, the shift towards hybrid work models has reinforced the need for flexible office solutions. Managed spaces provide advanced technology integration, open workspace designs, and wellness-centric amenities such as green-certified buildings and recreational areas.

Furthermore, GGCs are expected to create 4.25-4.5 lakh jobs this year and 1 million by 2029, indicating a growing demand for managed spaces in India.

Why GCCs Prefer Managed Offices in India?

There are several reasons why GCCs prefer managed offices in India, such as:

Flexibility and Scalability

Managed office spaces allow businesses to scale their operations seamlessly. Whether expanding into new markets or downsizing due to economic conditions, these offices provide adaptable solutions that cater to varying business needs.

Cost-effectiveness

Traditional office setups have significant overheads, including property taxes, maintenance, and utility expenses. Managed office spaces eliminate these additional costs, offering budget-friendly solutions with premium infrastructure and services.

Ready-to-use Infrastructure

Fully equipped with high-speed internet, ergonomic furniture, and advanced security systems, managed office spaces enable GCCs to commence operations immediately. This eliminates the time-consuming setup process associated with traditional leases.

Amenities and Support Services

Managed office spaces offer many facilities, including meeting rooms, breakout areas, concierge services, and wellness zones. These amenities enhance employee satisfaction and productivity, promoting a positive workplace culture.

Reduced Operational Burden

By outsourcing office management responsibilities, GCCs can focus entirely on their core business functions. Service providers handle property maintenance, IT support, and administrative tasks, ensuring seamless day-to-day operations.

Enhanced Employee Experience

A well-designed workspace contributes to employee engagement and well-being. Modern managed offices integrate ergonomic furniture, wellness areas, and collaborative spaces, creating an environment that supports efficiency and work-life balance.

Networking Opportunities

Being in a managed office space often means sharing the environment with other enterprises, promoting networking and collaboration. GCCs can use these opportunities to explore new business partnerships and industry insights.

The Impact of GCCs on India's Managed Office Space Market

The increasing demand for managed office spaces by GCCs in India is leading to rapid growth and impacting major industry trends. With incredibly high office leasing activity in 2024, GCCs have become the main occupiers of flexible office space, strengthening India's position as a global business hub. Here’s a more detailed insight:

Evolution and Growth of GCC-led Office Demand

In 2024, India's top seven cities, like Bengaluru, Hyderabad, and Pune, witnessed record-breaking office leasing of 77.2 million square feet, marking a 22.6% year-on-year increase. GCCs alone accounted for 36% of this demand, leasing approximately 28 million square feet.

Beyond sheer leasing figures, the GCC market in India has evolved significantly. Traditionally driven by technology firms, the sector is now diversifying, with strong participation from ER&D (engineering, research & development), BFSI (banking, financial services, and insurance), and healthcare industries.

The demand for high-quality managed office spaces has increased as these industries look for modern, flexible work environments to support innovation and operational efficiency.

Rise of New Players and Market Innovations

With over 1,950 GCC units operating in India as of December 2024, the sector is expected to grow rapidly, surpassing 2,500 units in the next three to four years. This expansion will result in GCCs occupying more than 300 million square feet of office space, further solidifying their role as the backbone of India's commercial real estate market.

New players in the managed office market are capitalising on this trend, offering tailor-made solutions that cater to GCC's evolving needs. Developers are increasingly focusing on premium office spaces, integrating smart technologies, sustainability initiatives, and collaborative work environments.

Additionally, the growing emphasis on REIT-listed commercial properties is enhancing the overall asset quality in India's office market, attracting long-term investments.

Overall, the managed office sector in India is experiencing a paradigm shift, with GCCs at its core. As the market evolves, businesses can benefit from enhanced workspaces that boost productivity, collaboration, and long-term growth.

India’s Key Cities Experiencing High Demand for GCCs

As Global Capability Centres (GCCs) continue to expand, certain cities in India have emerged as prime hubs for managed office space demand. These cities offer the right combination of talent availability, infrastructure, and business-friendly policies, making them attractive destinations for global firms.

Bengaluru: The GCC Powerhouse

Bengaluru remains the undisputed leader in India’s GCC landscape, accounting for nearly one-third of the country’s total office leasing activity. With its well-established IT ecosystem and deep talent pool, the city continues to attract multinational corporations looking for large-scale operations. In 2024 alone, Bengaluru captured 47% of GCC leasing demand, reaffirming its dominance in the sector.

Hyderabad: A Rising Contender

Hyderabad has rapidly positioned itself as a strong alternative to Bengaluru, thanks to its robust infrastructure, lower operational costs, and thriving technology ecosystem. The city has witnessed remarkable growth in GCC leasing over the past few years, particularly in the IT, BFSI, and ER&D segments.

With continued government support and investment in commercial real estate, Hyderabad is set to play an important role in India's managed office space expansion.

Pune: A Fast-Growing Centre

Pune has emerged as a preferred location for GCCs, especially in the automotive, engineering, and IT sectors. The city's proximity to Mumbai and its skilled workforce have made it an attractive destination for global firms looking to establish offshore operations.

The demand for managed office spaces in Pune has also surged, with developers increasingly focusing on high-quality commercial developments to meet growing requirements.

Delhi NCR and Chennai: Expanding Market Footprints

Delhi NCR and Chennai are also experiencing significant demand for office space in the GCC. Delhi NCR remains a strategic choice due to its connectivity and presence of multinational corporations across various industries.

Meanwhile, Chennai has seen notable growth in the last three years, particularly in the ER&D and BFSI segments, driven by its strong engineering talent pool and cost advantages.

How are GCCs Increasing the Demand for Flexible Office Spaces?

GCCs, particularly those in the technology, engineering, and BFSI sectors, prioritise dynamic and cost-effective office solutions that align with their evolving workforce needs.

By opting for flexible spaces, whether through coworking hubs or managed office setups, they gain the advantages of scalability, operational efficiency, and reduced overhead costs.

GCCs’ preference towards premium-grade workspaces has also influenced developers to design future-ready commercial spaces. This shift ensures that offices remain adaptable, well-equipped, and conducive to collaboration, accelerating demand for flexible workspaces.

The Rising Trends in Managed Office Spaces for GCCs

As GCCs evolve into enterprise hubs, several key trends are shaping their workspace requirements, promoting growth and enhancing operational efficiency. Check some of the listed trends below.

Hybrid Work Models

GCCs are at the forefront of hybrid work adoption, integrating flexible work environments that blend in-office collaboration with remote efficiency. Managed office providers are responding by offering agile setups, allowing companies to scale dynamically while maintaining productivity and engagement.

Technology Integration

Advanced technology is a keystone of modern managed office spaces. AI-driven workplace analytics, IoT-enabled infrastructure, and seamless digital collaboration tools are becoming standard features for GCCs, enhancing efficiency and supporting data-driven decision-making.

Sustainability and Green Spaces

Environmental consciousness also influences workspace design, with India’s GCCs prioritising energy-efficient measures in buildings, sustainable materials, and green-certified office solutions. Many managed office providers are integrating biophilic designs and eco-friendly operations to align with corporate sustainability goals.

Wellness and Employee-Centric Designs

The well-being of employees remains a priority, leading to the incorporation of wellness-focused office designs. Ergonomic workspaces, natural lighting, collaborative lounges, and dedicated wellness areas are being integrated to enhance employee experience and boost productivity.

The Future Outlook of Managed Spaces & GCCs in India

As managed office spaces evolve, their significance for GCCs in India will only grow. The shift towards GCC 8.0, marked by strategic transformation and enterprise-wide integration, will demand highly adaptive workspaces that foster innovation, attract top talent, and optimise operations. The future will see a seamless blend of technology, flexibility, and sustainability, positioning managed office spaces as essential for GCC success.

Managed Spaces: The Strategic Choice for GCC Growth in India

In summary, understanding why GCCs prefer managed offices in India is necessary for businesses looking to capitalise on the evolving commercial real estate market and the growth of these global centers. From fostering scalability and agility to promoting sustainability and innovation, GCCs are shaping India's next phase of commercial real estate.

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